\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 38 Fibocom Wireless Inc(300638) )
Core view
The performance in 2021 is in line with expectations. In 2021, the company achieved a revenue of 4.109 billion yuan, a year-on-year increase of + 49.8%; The net profit attributable to the parent company was 400 million yuan, a year-on-year increase of + 41.5%; The net profit deducted from non parent company was 373 million yuan, a year-on-year increase of + 42.7%. The annual performance is basically in line with expectations.
Revenue increased quarter by quarter and profitability was affected by supply shortages. In 2021, the company maintained high growth and achieved quarterly increase in revenue. 21q4 company achieved operating revenue of 1.256 billion yuan, a year-on-year increase of + 62% and a month on month increase of + 22%; The net profit attributable to the parent company was 78 million yuan, a year-on-year increase of + 31%. It mainly benefits from the sustained high demand of the Internet of things market, the rich product line of the company and the gradual improvement of the marketing layout. In 2021, the company's gross profit margin was 24.1%, with a year-on-year increase of -4.2pct, which was mainly affected by the shortage of materials and the change of product structure; The net interest rate was 9.8%, with a year-on-year decrease of -0.5pct. However, the decrease of the company's net profit margin was significantly lower than that of the gross profit margin, mainly due to the improvement of management efficiency and the release of scale effect, and the decrease of expense rate during the period. From the perspective of volume price relationship, on the one hand, the company launched a number of 5g products during the reporting period, on the other hand, the company conducted price transmission for material shortage. Therefore, the volume and price of the company's module products increased at the same time. In 2021, the shipment volume of the company's module products reached 34.76 million, a year-on-year increase of + 37%, and the average price of the corresponding products was 115 yuan, a year-on-year increase of + 7%.
Continue to strengthen R & D, marketing and supply chain capabilities and lay the foundation for long-term growth. In 2021, the company's R & D investment reached 460 million yuan, a year-on-year increase of + 49.6%, accounting for more than 10% of revenue in recent three years; The number of R & D personnel reached 1027, with a net increase of 204 year-on-year, and the R & D system continued to grow. In order to reach the decentralized downstream market of the Internet of things more easily, the company will strengthen market expansion in 2021. On the one hand, it will improve the layout of the global sales team, on the other hand, the channel construction has achieved initial results and strengthen the company's marketing ability. In terms of supply chain, on the one hand, the company actively prepared goods. By the end of 2021, the company's inventory had exceeded 800 million yuan, highlighting its determination to ensure supply. On the other hand, the company also strengthened its supply chain management ability through online information system optimization projects, and strengthened exchanges and cooperation with core component suppliers such as Intel, Qualcomm, MTK and Ziguang zhanrui. The company's layout in R & D, marketing and supply chain is expected to become the basis for the company's long-term growth.
Risk tip: the development of Internet of things is not as expected; Market competition intensifies.
Investment suggestion: lower the profit forecast and maintain the "buy" rating.
In the previous profit forecast, we assumed that Ruiling wireless would complete the consolidation in 2022, because the company has not completed major asset restructuring. Therefore, assuming that the restructuring will be completed in 22h2, the profit forecast is lowered. It is expected that the operating revenue of the company in 22-23 years will be reduced from the previous 8.4/10.5 billion yuan to 6.5/9.8 billion yuan, and the net profit attributable to the parent company will be reduced from 660 / 830 million yuan to 580 / 790 million yuan, corresponding to 26 and 19 times of PE respectively. It is optimistic that the company will continue to strengthen its R & D, marketing and supply chain capabilities internally, further strengthen the layout of the Internet of vehicles through the acquisition of the remaining equity of Ruiling wireless, realize the leapfrog development of revenue scale and business volume, continue to benefit from the development trend of downstream application market externally, and maintain the "buy in" rating.
